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Should you opt for arbitration?

Going through a business dispute is not something any business owner wants to do. Unfortunately, it is sometimes a reality all the same.

In the event of a dispute, it is possible to handle it in many different ways. Arbitration is one potential option.

How arbitration works

FINRA takes a look at alternative forms of dispute resolution. Arbitration serves as one of the most popular alternative methods, with the most similarities to litigation without many of the drawbacks.

First, an arbitrator holds similar power and capabilities as a judge. They will listen to all sides of a dispute present their case and evidence. Then, based on what they see, they make a final verdict.

This verdict has legally binding power, meaning that everyone must abide by it. This takes having to come to a final decision out of the hands of the involved parties, which could work as a benefit or a downside depending on a person’s situation.

The benefits it offers

Arbitration thus offers more structure, and structure that leans closer to a traditional court system and setting.

At the same time, it allows people to avoid the expenses associated with taking a case to court. It also avoids the time spent in a court case, which can take months just to reach the court date.

Finally, it protects the privacy of the involved parties. In a court case, all records of the case itself go public at the end, allowing for anyone to peruse the documents and see all personal and financial information.

Thus, arbitration works well if disputing partners need structure but want to avoid the hassle of a court case.

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